A convicted prisoner told an inquest into the disappearance of Perth woman Sarah McMahon more than a decade ago she's still alive and living overseas with two children.

The last confirmed sighting of Ms McMahon, then 20 years old, was on November 8, 2000.

She was seen driving away from her Claremont workplace while talking on the telephone, the inquest into her suspected death heard in Perth this week.

Before leaving work she had mentioned she was going to "see a bloke" in the Bassendean area that afternoon, the Coroner's Court heard.

The last person she took a call from was Donald Morey, a man 25 years her senior, who has since been convicted of trying to strangle a prostitute to death in 2003.

Currently serving 13 years' jail for the attempted murder, Morey, now 57 and in poor health due to a heart condition, appeared at the Perth inquest into Ms McMahon's suspected death on Friday.

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According to a work log he kept for his job with a trucking company at the time, Morey had been cleaning and refuelling trucks at his workplace when Ms McMahon "disappeared".

But Counsel Assisting the Coroner Philip Urquhart accused Morey of fabricating the entry.

Mr Urquhart said there was no record of him using his fuel card, while phone tower records placed his mobile near the Bassendean area that afternoon.

Morey claimed he never saw Ms McMahon the day she vanished, but had helped her formulate a plan to flee the country illegally.

"She's overseas, she's alive and she has two children," he said.

"I have been in contact with Sarah basically ever since."

If you want to put her life in danger you f..king wear it.

But he refused to say where Ms McMahon was living, claiming he was protecting her and her children from danger by not revealing her whereabouts.

Morey would also not say how he has been communicating with Ms McMahon after he was imprisoned in 2005, for fear of being "locked up in maximum security indefinitely".

"Do not put her life in danger," he told Mr Urquhart when questioned about where Ms McMahon was and how she left the country.

Morey also maintained his innocence in relation to the attempted murder conviction, which he suggested he'd been set up for because of Ms McMahon's "disappearance".

"It was Sarah's decision to leave - not mine," he said.

Sarah's family have not heard from her in 12 years.

Morey met Ms McMahon at her older sister's house months before she disappeared and maintained there was never a sexual relationship between the pair.

"She could confide in me," he said. "We just talked".

Ms McMahon had intended to call her mother before she left, but had lost her phone, Morey told the inquest.

He said he was unable to contact her for more than a month after she left but sent her text messages and repeatedly tried to call.

"All I can tell you is I sent a hell of a lot of text messages," he said.

But Mr Urquhart told the Coroner there were no records of Morey trying to contact Ms McMahon by phone after November 8, 2000.

Morey then refused to answer any further questions and accused Mr Urquhart of "winding" him up when he had a "crook heart".

"Mr Morey it seems to me you just don't want to answer the hard questions," Mr Urquhart said.

Morey requested a medic and was taken back into lockup.

"If you want to put her life in danger you f..king wear it," he said.

Ms McMahon's sister Amanda Smith giving evidence earlier in the week described Morey as "creepy" and "too interested" in her younger sister.

The inquest has also heard evidence of a black bag found in Morey's bedroom after Ms McMahon's disappearance, which according to three witnesses contained gaffer tape, rope, knives and graphic pornographic magazines which involved fake corpses in compromising positions.

Morey accepted he had a black bag he used to carry his lunch in for work, but rejected ever buying the pornographic material.

"Common sense tells you I'm not into that sort of garbage for starters," he said.

"Man, if I'm supposed to be this mad serial killer running around, why would I be carrying this bag around with me."

The state coroner Alastair Hope will hand down his findings on January 17. It is not known whether they would involve recommendations to the DPP.